The Indian stock market saw strong buying momentum in intraday trade on Monday, May 4, pushing benchmark indices — the Sensex and Nifty 50 — up by over 1% each.The 30-share Sensex jumped 1,000 points, or 1.3%, to hit an intraday high of 77,911. Meanwhile, the Nifty 50 climbed 1.2% to touch 24,290.The rally was broad-based, with the Nifty Midcap 150 and Nifty Smallcap 250 indices also advancing more than 1% each.Investor wealth surged by nearly ₹6 lakh crore in a single session, as the total market capitalisation of BSE-listed companies rose to ₹469 lakh crore from ₹463 lakh crore in the previous session.
Why is the market rising? Here are five key factors:
1. Assembly election trends
Early trends from the 2026 Assembly elections in West Bengal, Tamil Nadu, Kerala, Assam, and Puducherry appear to have boosted investor sentiment.Experts suggest that the BJP’s strong performance in Assam, West Bengal, and Puducherry, along with improved prospects in Kerala and Tamil Nadu, could support political stability and encourage business activity.
2. Hopes of US-Iran talks
Optimism around easing geopolitical tensions also supported markets. US President Donald Trump indicated progress in talks with Iran, following Tehran’s proposal aimed at reducing conflict and stabilising the Strait of Hormuz.
3. Cooling crude oil prices
Brent crude prices eased below $110 per barrel amid expectations of smoother shipping movement through the Strait of Hormuz. Lower oil prices are generally positive for India, which relies heavily on imports.
4. Positive global cues
Strong cues from Asian markets added to the momentum. South Korea’s Kospi surged sharply during the session, while markets in Japan and China remained closed due to holidays.
5. Technical factors
Market experts point to key technical levels influencing the rally. The Nifty faces resistance around 24,500, while support is seen near the 23,800–24,000 zone. Indicators suggest a neutral trend with cautious optimism in the near term.